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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?


To: jackmore who wrote (40294)9/9/1999 9:10:00 PM
From: Wyätt Gwyön  Read Replies (1) | Respond to of 152472
 
difficult to grow revenues at the rate needed to justify current p/e
My understanding is that the PE is based on earnings, not revenues. Price to sales is a separate argument, but who's going to complain if earnings growth and higher-margin revenue growth (from royalties and ASICs) outstrip lower-margin handset revenue growth? Seems to me that PE (on run-rate basis) will likely be revised UPward as high-margin components take over. JMHO